Shelly 
After a sharp selloff in intraday trade on Tuesday, bulls took control pushing benchmark indices above crucial resistance levels on December 22. The S&P BSE Sensex closed above 46,000 while the Nifty50 also managed to reclaim 13400.
Let’s look at the final tally on D-Street on Tuesday – the S&P BSE Sensex rose 452 points to 46,006 while the Nifty50 rallied 137 points to close at 13,466.
Sectorally, the action was seen in IT, Utilities, telecom, metals, and healthcare.
On the broader markets front – the S&P BSE Mid-cap index was up 1.09 percent, and the S&P BSE Small-cap index rose 0.95 percent.
The Nifty50 did bounce back from crucial support levels but experts caution at current levels as volatility is likely to stay high amid strict lockdown and any update about the spread of new COVID-19 cases could trigger profit bokking.
“Market took an unexpected positive momentum in the afternoon, during a see-saw trading day, following the positive opening of the European market, which recovered from yesterday’s sell-off,” Vinod Nair, Head of Research at Geojit Financial services told Moneycontrol.
“Volatility is expected to stay high in the near-term due to strict lockdown impacting economic recovery. However, the market is expected to remain bullish in the medium to long term, backed by overall progress in economic activity in 2021,” he said.
Here is what experts think that investors should do on December 23:
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities
Today, since the beginning of the session, the Nifty 50 index refused to fall below the 13200 levels following strong short-covering on back of positive news flow from the US market.
The Nifty 50 index has created a Bullish Harami pattern on the daily chart, indicating a continuation of the bullish trend. However, for the positive momentum to continue we need the Nifty 50 index to be above the 13550 levels.
Meanwhile, if the market breaks the 13100 levels, we may see another decline to 12900/12800 levels. On Wednesday, the Nifty would be hit hard at 13550 and 13650 levels.
| Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited |
Nifty formed an Inside Bar as it traded inside the wider trading range of the last session and also formed a Hammer kind of candle which indicates that supports are intact and a short term base could again form in the market.
Now, it has to hold above 13450-13500 zones to witness a bullish bias towards 13600 and 13750 zones while on the downside major support exists at 13333 and 13131 levels.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited
The Market witnessed some lackluster movement after the recent correction. Nifty 50 Index is still holding above the support level of 13100, our research suggests trading above 13100 is key to keep the long-term positive trend intact.
Any move below 13100 levels, we expect the correction to gain momentum, which could lead to a downside projection till 12900-12910 level. The momentum indicators like RSI, MACD to recover after staying neutral to bearish in recent time
Rohit Singre, Senior Technical Analyst at LKP Securities
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